http://www.cbc.ca/news/business/volkswagen-eu-martin-schulz-german-economy-1.3256024

German car company, Volkswagen, was recently involved in an emissions scandal that has resulted in major losses for the company and Germany’s economy in its entirety. The company produced vehicles with illegal software in them and has had to recall 11 million cars. The cost is expected to exceed the 6.5 billion euros they have put aside to deal with the scandal, leaving Germany’s economy in jeopardy. Germany, being the “largest economy” in Europe, employs “more than 750,000 people” in the country’s car industry.

From an ethical standpoint, this scandal has obviously put both Volkswagen and Germany in a position of vulnerability. It will leave the company with a poor reputation, and after something like this, it will be difficult for customers to regain Volkswagen’s trust. In the long run, this scandal could potentially run the risk of losing consumers, as it was morally wrong on many different fronts. Short term, it could leave people without jobs as the company may have to cut jobs in order to cover costs. This will create economic instability for all of Germany. Was it worth it? Definitely not – Business ethics are essential to maintaining a thriving position in any economy.

Sources: http://www.cbc.ca/news/business/volkswagen-eu-martin-schulz-german-economy-1.3256024